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To modify symbols in Illustrator, ensure the symbols panel is open. Define the symbol and make any desired modifications such as transformations or adding drop shadows. Ways to define a symbol include using the new symbol icon, the options menu, or dragging the symbol in. Make sure to name the symbol and choose type as movie clip. Once defined, the symbol becomes an instance which can be further manipulated using the bounding box. The symbols panel acts as a database for the symbols created.